Curaleaf Holdings said its offer to acquire Aurora Cannabis still stands, hours after Aurora accepted a buyout offer from Organigram Global for 561 million Canadian dollars ($401.1 million).
Curaleaf said it believes its most recent proposal, which values the company at $324.2 million, is superior to the Organigram deal, whose terms Curaleaf said it intends to study going forward.
"Curaleaf believes its offer represents better value, offering a superior combined business with a stronger capital markets profile, greater certainty and speed to close, and greater anticipated synergies," the company said. "It is also revealing that neither Aurora nor Organigram made any reference to whether the transaction is dilutive or accretive to shareholders."
The company said the Aurora board's decision not to grant it due diligence access blocks any possibility that it will submit a higher bid, accusing the board of neglecting their fiduciary responsibilities.
Aurora had for months resisted Curaleaf's takeover approaches, which it said were inadequate particularly regarding the European medical cannabis business. Curaleaf made an unsolicited, hostile bid in August valuing the company around $272 million before sweetening its offer last month.
Curaleaf on Tuesday also reported a narrower loss in the third quarter of $32.7 million, or 14 cents a share. That compares with a loss of $57 million, or 24 cents a share, a year earlier.
Revenue rose to $352.7 million, up from $317.9 million a year prior.
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